From small business owners, to entrepreneurs, and emerging marketing professionals,
those who aim for meaningful results know that understanding the “Marketing Mix” is
crucial for growing your business.
Marketing Mix is a term coined by Harvard Professor Neil Borden in the1940’s, and later
redefined as The 4 P’s by Jerome McArthy in the 1960’s. So what is the marketing mix and
why is it important? Much like the term itself says, marketing mix is the combination of key
factors companies use to market their products or services while ensuring customer
satisfaction, profitability, and alignment with company goals. The reason the marketing
mix is crucial in building a strong marketing strategy is because it provides a clear and
direct path while accomplishing the before mentioned goals (meeting customer needs,
achieving company goals, while also generating a sustainable profit).
The 4 Ps Explained:
Product- more than just the physical goods; can refer to services, information, experiences, ideas, etc.
Price- the total of what the consumer pays. Can fluctuate due to manufacturing costs, market demand, or competitor’s pricing.
Place- refers to the geographical location of the product. Where it can be purchased, where services are rendered, or the exact location of the product inside a store.
Promotion- strategies used by a company to remind, inform, and persuade its target audience about their products.
As shown in the picture below from Kotler's Marketing Management (15th ed., p. 47), the
marketing mix structure highlights the importance of maintaining balance between
product, price, place, and promotion.
A strong marketing strategy based in the marketing mix makes sure that businesses stay
focused, and competitive in their industries, while remaining adaptable. This in turn helps
drive efficient results in both short, and long terms.
Now, let’s apply this to a real-world example and set the stage!
Snowcakes Bakery wants to improve their loyalty with new customers. They have an
amazing offer for new customers. Their voucher program states that after 5 purchases of
$50 or more in the span of 3 months receive 60% off on your next order!
How can they effectively apply the 4 Ps to address the challenge of increasing awareness
of their voucher program?
Product- wide variety of freshly baked goods, known for their high-quality
Price- pricing aligns with the perceived value of their products. Premium pricing reflects the quality of their baked goods
Place- they operate in a cozy location in the heart of the city, also linked to their online store/ app
Promotion-the bakery establishes several channels used to spread awareness of their voucher program. Staff remind customers inside the establishment, marketing campaigns are established to follow up with emails and text reminders, they keep a clean and appealing social media presence
Their focus on offering a valuable reward, while making it easily accessible, demonstrates
how the marketing mix can address real-world challenges and drive business success.
In summary, the marketing mix represents a combination of key factors—product, price,
place, and promotion—that companies use to market their products while ensuring
customer satisfaction, profitability, and goal alignment. By balancing these elements,
businesses can build strong, flexible strategies that can address real-world challenges,
much like Snowcakes Bakery's efforts to increase loyalty and awareness through a
thorough and targeted approach to their voucher program.
If you think you’re ready to take your marketing strategy to the next level start leveraging the
marketing mix to create a results-driven approach for your business.
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